The chipmaker reported fiscal second-quarter revenue of $5.742 billion and non-GAAP diluted earnings per share of $5.14. The company had been expected to report sales of $5.7 billion and earnings of $5.14 a share, based on a FactSet survey of 27 analysts.
In the same period a year ago, the company posted earnings of $5.21 a share on sales of $5.5 billion. It reported net income of $481 million.
"Second quarter results were in-line with our expectations, and saw limited impact from the effects of COVID-19," said Hock Tan, president and CEO of Broadcom, in a statement.
Shares dipped after the earnings release, falling $3.46, or 1.1%, to $305.43 in recent action.
The company offered fiscal third-quarter revenue guidance of $5.75 billion plus or minus $150 million.
"Our third quarter guidance for semiconductors reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply chain constraints and an expected substantial reset in wireless," Tan said in the statement.
Broadcom offered third-quarter adjusted EBITDA guidance of $3.22 billion plus or minus $75 million, or 56% of revenue at the midpoint of guidance.
Even before the pandemic, Broadcom was wrestling with slow chip demand and uncertainty caused by the Trump administration’s trade war with China and its ban on selling to China’s Huawei.
The global economic slowdown is expected to affect the launch later this year of new phones compatible with faster 5G network technologies.
Broadcom shares have largely recovered from their March lows, when they bottomed at $155.67.
Shares of Broadcom ended the day off 64 cents, or 0.2%, at $308,89.
Broadcom is a holding in Jim Cramer's Action Alerts PLUS member club.